Estimate internal rate of return from an upfront investment and projected cash flows.
Company Valuation Calculator
Use this free company valuation calculator to estimate business value using recurring revenue, earnings, or EV-to-revenue methods. It is built for founders, business owners, and investors searching for company valuation calculator, startup valuation calculator, and how much is my business worth.
Interactive calculator
Display currency
Choose the currency used to display the valuation outputs and export values.
Quality Inputs
Adjust a few operating signals and the tool will map them into a quality score for the valuation ranges.
Quality Score
74
25.0%
0%300%
70.0%
0%95%
90.0%
40%100%
20.0%
0%100%
10.0%
-50%100%
Recurring Revenue Valuation
Estimate enterprise value from recurring revenue using ARR multiples that shift with your quality score.
Recurring software revenue with typical SaaS margins and retention.
Currency: USD
Valuation Result
ARR
$0.00
MRR × 12
ARR Multiple
6.42×
Range: 4.8× to 7.0×
ARR Multiple Position
4.8×6.42×7.0×
MRR Multiple
77.0×
Range: 58× to 84×
Enterprise Value
$0.00
ARR × multiple
This method is most useful when a large share of revenue is recurring and durable.
Projection
Projected MRR
Projected Enterprise Value
Projection uses the selected growth and retention assumptions.
How the math works
Formula
TV = FCF × (1 + g) / (WACC − g)
- TVTerminal value — estimated worth of all future cash flows beyond forecast period
- FCFFree Cash Flow — cash generated after capital expenditures
- gLong-term growth rate (typically 2%–5% for mature businesses)
- WACCWeighted Average Cost of Capital — blended required return of debt and equity
Plain English
Valuation is less formula and more judgment. Early-stage companies use revenue multiples (5–15× ARR for SaaS) because earnings are often negative. Mature businesses use a DCF: forecast cash flows, discount them back at WACC, and add terminal value. For quick comparisons, P/E multiples are common — a company earning $2M at a 15× multiple is worth $30M. Multiples compress when interest rates rise because WACC increases.
How to use this calculator
- 1
Choose the valuation method that best fits the business model: recurring revenue, earnings, or EV-to-revenue.
- 2
Enter the operating inputs and adjust the quality assumptions to reflect growth, margins, retention, and customer concentration.
- 3
Review the estimated value, multiple position, and projection to compare valuation narratives.
Why this number matters
Company value depends on business model, profitability, growth, retention, concentration risk, and market comparables. A valuation calculator cannot replace diligence, but it can help frame a realistic range for fundraising, acquisitions, strategic planning, and board conversations.
What this calculator helps you answer
- •How much could my SaaS or services business be worth?
- •What valuation range does my revenue or earnings profile imply?
- •How do growth, margin, retention, and concentration assumptions change the estimate?
Frequently asked questions
Which valuation method should I use?+
Recurring revenue multiples are often useful for subscription businesses, P/E can work better for stable profitable companies, and EV-to-revenue can help when revenue scale matters more than current profitability.
Does this calculator replace a formal valuation?+
No. It is a planning and framing tool. Formal valuation work usually requires comparable analysis, market conditions, legal context, and deeper financial diligence.
Why do growth and retention matter so much in valuation?+
Higher growth and stronger retention typically imply more durable future cash flows, which often support stronger valuation multiples.
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